This presentation contains statements concerning the future business performance of the Vossloh Group that are based on assumptions and estimates from the Company management. If the assumptions that the projections are based on fail to occur, the actual results of the projected statements may differ substantially. Uncertainties include changes in the political, commercial and economic climate, the actions of competitors, natural catastrophes, epidemics, legislative reforms, the effects of future case law and fluctuations in exchange rates and interest rates. Vossloh and its Group companies, consultants and representatives assume no responsibility for possible losses associated with the use of this presentation or its contents. Vossloh assumes no obligation to update the forecast statements in this presentation.
The information contained in this presentation does not constitute an offer or an invitation to sell or buy Vossloh shares or the shares of other companies.
2 Quarterly Statement Q1/2021
VOSSLOH GROUP: HIGHEST Q1 OPERATING PROFITABILITY FOR 10 YEARS
SIGNIFICANT INCREASE IN OPERATING PROFITABILITY AND IN SALES
Sales up 13.2 percent year on year to €207.1 million despite continuing challenges of COVID-19 (previous year: €182.9 million)
Significant increase in sales, partly due to pandemic- related shifts of deliveries to 2021, particularly in the Fastening Systems business unit
EBIT exceptionally high in Q1 2021 at €12.1 million (previous year at €0.9 million excluding the one-time effect resulting from the transitional consolidation of a Chinese joint venture); EBIT margin at 5.8 percent (operating EBIT margin in previous year: 0.5 percent)
EBITDA margin at 12.4 percent (operating EBITDA margin in previous year: 7.2 percent)
3 Quarterly Statement Q1/2021
Strong orders received, Group book-to-bill ratio at 1.26 in Q1 2021
Selected sales success stories:
Vossloh Fastening Systems regains market leadership in Germany by winning multiyear framework agreements
High volume of orders received by Vossloh Tie Technologies in Mexico
Customized Modules awarded multiyear framework agreements to deliver switch systems for both theInland Rail project in Australia and the Netherlands
Five maintenance machines (four HSG-city and one MPM) sold to China (Lifecycle Solutions)
(Please note: in case of framework agreements, reporting as orders received only when the deliveries are called off)
Thiele family to remain Vossloh's main shareholder through planned family trust
Estate planning provides the stability needed for implementation of the group strategy
Hybrid note placed in February 2021 to support the growth strategy, significantly reducing net financial debt excluding lease obligations to €202.1 million (previous year: €386.4 million); equity ratio up to 43.9 percent (previous year: 28.6 percent)
SALES AND OPERATING EBIT MARGIN SIGNIFICANTLY UP COMPARED TO PREVIOUS YEAR
KEY GROUP INDICATORS
Earnings per share
Free cash flow2
Sales revenues up 13.2 percent, driven by Core Components, Customized Modules and Lifecycle Solutions on a par with the previous year
EBIT and EBIT margin on an operating basis significantly improved year on year as planned, largely due to higher earnings contributions from the Core Components division; Customized Modules also significantly improved; Lifecycle Solutions still slightly down compared to previous year
Net income substantially improved year on year; previous year's figure included losses from discontinued operations, which were largely offset by the positive onetime effect of the transitional consolidation
Free cash flow seasonally negative due to typical working capital increase at the beginning of the year (among others due to higher inventories), previous year's figure includes a negative €30 million from discontinued operations
Capital expenditure lower than previous year; decreased particularly in the Lifecycle Solutions and Customized Modules divisions
Value added boosted by one-time effect in previous year, significant improvement on an operational basis year on year
Figures for previous year excluding positive book effect of €15.6 million related to the transitional consolidation of a Chinese joint venture in the Fastening Systems business unit (figures reported in Q1 2020: EBITDA/EBITDA margin €28.8 million/15.7 percent, EBIT/EBIT margin €16.5 million/9.0 percent).
Previous year's figure includes effects from discontinued operations.
4 Quarterly Statement Q1/2021
HYBRID NOTE CONTRIBUTES TO IMPROVED EQUITY RATIO AND REDUCED NET FINANCIAL DEBT
KEY GROUP INDICATORS
3/31/2020 12/31/2020 3/31/2021
Average working capital
Average working capital intensity
Closing working capital
Average capital employed
Closing capital employed
Net financial debt1
Equity significantly higher than year-end figure for 2020, mainly due to proceeds from the placement of the hybrid note (approx. €150 million) and positive net income; equity ratio increases to more than 40 percent
Average working capital intensity significantly better than first quarter of the previous year; average working capital on previous year's level despite considerable increase in sales revenues
Capital employed at reporting date increased compared to end of Q1 2020, mainly due to higher working capital and capital expenditure exceeding depreciation and amortization (12-month period)
Net financial debt significantly reduced compared to the end of Q1 2020, primarily due to cash inflows from the hybrid note of roughly €150 million and positive FCF in core business of almost €40 million over the last twelve months
Net financial debt excluding lease liabilities. Net financial debt would increase by €42.3 million on 3/31/2021 if these lease liabilities were included.
Quarterly Statement Q1/2021
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